Step Two Corporation Receives 'Hold' Rating from MarketsMOJO, Strong Financial Performance in Last Quarter

Step Two Corporation, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on August 26, 2024. This upgrade is based on several factors, including the company's strong financial performance in the last quarter.
According to the latest financial report, Step Two Corporation's PBDIT(Q) has reached its highest at Rs 2.10 crore, while PBT LESS OI(Q) and PAT(Q) have also shown significant growth at Rs 2.11 crore and Rs 1.75 crore respectively. This indicates a positive trend in the company's financials.

Moreover, the stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on August 26, 2024. This is supported by various technical indicators such as MACD, Bollinger Band, and KST, which all suggest a bullish outlook for the stock.

In terms of valuation, Step Two Corporation has an attractive Price to Book Value of 2.9 and a ROE of 23.2, making it a fair value compared to its historical valuations. Additionally, the company has shown strong profitability with a return of 144.58% in the last year, outperforming the market (BSE 500) returns of 39.36%. This is also reflected in the company's low PEG ratio of 0.1, indicating a potential undervaluation.

It is worth noting that the majority shareholders of Step Two Corporation are the promoters, which can be seen as a positive sign for investors. However, the company's long-term fundamental strength is weak, with an average ROE of 3.49% and poor growth in operating profit.

In conclusion, while Step Two Corporation's recent financial performance and technical indicators suggest a bullish outlook, its weak long-term fundamentals may warrant a 'Hold' rating from MarketsMOJO. Investors are advised to carefully consider all factors before making any investment decisions.